Recently I asked someone- What did you learn from the recent train accident near Kanpur? And he gave me a long answer on -how to improve railway security, how Suresh prabhu should resign, so on and so forth..
But he never thought for a second that- this could have happened to him!! And if this were to happen to him, how will his family cope up with the situation- both emotionally and economically! Not to my surprise- he had never imagined such a situation because we never wish to think about death and the negative feelings associated with the same. As a mater of fact, we have been told to be optimism. But the sheer optimism of those 143 passengers couldn’t save them from death and the same optimism is not going to help the children who survived!
How many of those do you think would have a term insurance cover? Not many I guess..
So while it pays to be an optimist, one has to be prepared for worst scenarios in life- that is what will make you and your family navigate such situations in life!
So if you are still avoiding term insurance as it doesn’t give you any return- think again! You could have been one of the passengers in that train that hoped to reach its destination the next day! Think about the financial security this one decision of yours can provide can provide to your family.
So I urge you to have a quick term plan comparison and protect your family today.
Here is the IRDA claim settlement ratio 2016-17 for a few term life insurance for which data is available .
- HDFC Life has settled about 23006 claims in 2016-17 while rejecting only 123 claims giving it a claim settlement ratio of 98%
- Max Life insurance has settled about 4137 claims in 2016-17 while rejecting about 77 claims giving it a claim settlement ratio of 93%. About 5% claims are pending.
- SBI Life has settled about 19856 claims with claim settlement of 91.6% till Sep 30, 2016
Hdfc Life has also given some statistics on why claims are getting rejected. This is for the first time we are seeing insurers giving reasons for claim rejection:
“Out of 53 repudiated claims,45% were repudiated due to non disclosure of existing health conditions, 19% were repudiated due to misrepresentation of age, 17% were repudiated due to income misrepresentation, 9% were repudiated due to non- disclosure of insurance with other insurance companies prior to our policy, 6% due to misrepresentation of occupation and 4% due to other misrepresentation.”
This information should help you avoid these mistakes while buying a term insurance policy.
To see the latest premiums and claim settlement ratio of term insurance , compare now.